Matthews Asia: Portfolio Manager Roundtable

During the first half of the year, continued media coverage about the sluggish U.S. recovery, debt problems in the Eurozone and concerns over China's slowing growth dominated macroeconomic news as investors anticipated a pullback in the markets. Despite this short-term noise, we remain confident in the long-term growth of Asia.

The following Portfolio Managers will share their thoughts on these and other developments in the region, as well as our strategies for investing in the region:

This webcast is offered to investment professionals only. It will reflect the opinions of Matthews International Capital Management, LLC. These opinions are not to be construed as investment advice. The subject matter contained herein has been derived from several sources believed to be reliable and accurate at the time of compilation. Matthews does not accept any liability for losses either direct or consequential caused by the use of this information.

For investors interested in environmental, social and governance (ESG) strategies, a regionally diversified approach can help capture global growth. Across Asia, the ESG landscape is rapidly evolving, creating enormous opportunities for companies that can provide goods and services that improve quality of life while addressing social, economic and environmental challenges.

For investors interested in capturing China’s long-term growth potential, lower volatility portfolios made up of high-quality stocks may have strong appeal. Chinese equities present an intriguing total return opportunity, anchored by attractive dividend yields and improving dividend growth prospects. Meanwhile, China’s smaller companies, which tend to be less volatile than their large-cap peers, are riding a wave of innovation and are positioned to come into their own as investment opportunities in 2018.

In 2018, will the U.S. market continue to power up on expanding margins? What would that mean for the rest of the world’s economies? Will it signal a shift among investors toward active strategies that are better able to invest down the market-cap scale? If so, then the new year may be one in which the style of portfolio flows into Asia's economies starts to change. It may also be that Asia is once again seen as a separate region from the emerging markets.

We invite you to join Matthews Asia’s Chief Investment Officer Robert Horrocks, PhD, in a discussion about the most likely global investment scenarios for 2018.

Please join Investment Strategist Andy Rothman, who will provide a macroeconomic overview of China and offer his outlook for the coming year. Portfolio Manager Andrew Mattock will give his perspective on what happened in China’s stock market over the past year and give insight on what investors can expect in 2018.

Asia’s markets have maintained their strong start throughout the year, yet investors still seem to be climbing a wall of worry about the sustainability of the region’s growth.

We invite you to join Matthews Asia’s Chief Investment Officer, Robert Horrocks, PhD, for a webcast to address if the acceleration in earnings can be sustained, and if Asia’s growth can turn into equity returns. Additionally, he will discuss which countries and sectors are likely to prove resilient amidst global political and economic uncertainty and how active managers can generate attractive returns in this environment.

We invite you to join Matthews Asia’s Michael Oh and Andy Rothman for a short webcast to discuss the potential risks and opportunities from rising tensions on the Korean peninsula.

Investment Strategist Andy Rothman will discuss the Chinese, North Korean and American leadership perspectives and the risks for military conflict. Andy has been writing about relations between the three nations for many years and visited Pyongyang a decade ago, just prior to North Korea’s first nuclear test. He will explain why tough rhetoric is likely to create investment opportunities rather than war.

Michael Oh, Lead Manager of the Matthews Korea Strategy, will explain how South Korean consumers and investors may respond to rising tensions, as well as discuss the impact on market liquidity and valuations. Michael also will look beyond Korea and cover any broader implications for the rest of Asia.

The relative under performance of emerging markets over recent years has certainly hurt performance of globally diversified portfolios, shaking investor confidence. That said, the longer-term growth trends in Asia are still strong, and our observations on the ground point to very positive nearer-term signals. We believe this change signals a need to reassess how markets are likely to perform and to look beyond the U.S. for new sources of growth. Asia’s equity and fixed income markets not only tap into new growth opportunities but there are also solutions that can enhance risk-adjusted returns—even as rates are rising.

Please join us for a live webcast with Yu Zhang, CFA, Lead Manager of the Matthews Asia Dividend and the Matthews China Dividend Strategies and Satya Patel, CFA, Lead Manager of the Matthews Asia Credit Opportunities and Co-Manager of the Matthews Asia Strategic Income Strategies.

China's growth has a profound impact on the economies of Asia and securities markets around the world, and the country's economic headwinds are discussed daily in the media. Sensationalist stories are easier to submit to editors and garner a larger readership, but is there a more nuanced way of looking at the issues that may lead to better investment decisions? Join this live event to hear the key questions facing investor addressed.

Recent market volatility has shaken the confidence of investors, particularly those buffeted by the relative underperformance of broad emerging markets. Where can investors look to find return to take advantage of this volatility?

During our upcoming webcast, Portfolio Manager Teresa Kong, CFA, and Client Portfolio Strategist David Dali, will discuss:
• Brexit and the implications on Asia
• The case for dedicated, long-term Asian investing
• The more recent market conditions that make this a uniquely attractive time to consider Asian investments

Teresa and David will also answer questions you may have about investing in Asia. Please register and submit your questions to engage in this live event.

China faces many challenges, from high levels of corporate debt and new home inventories to "zombie" state-owned companies and capital outflows. Will these challenges result in a hard landing, or will they contribute to gradual slower growth and greater volatility?

These are important questions for investors because China accounts for about one-third of global growth, a larger share than the U.S., Europe and Japan combined.

We invite you to access this webcast replay where Andy Rothman, Investment Strategist for Matthews Asia, demystified:

- Commonly misunderstood aspects of China's economy
- RMB devaluation and the impact of U.S.-China trade
- Why China is the world's best consumer story

As active Japan investors, we seek quality growth opportunities across the market-cap spectrum. We believe Japanese companies will continue to flourish in the current market environment— in particular those positioned to benefit from growth opportunities in Asia, Japan's corporate governance improvements and domestic growth outlook.

During the past year, Asia has been a source of equity market volatility, but Asia has also distinguished itself from other emerging markets in its resilience and its commitment to structural reform. Given the current valuation disparity between developed equity markets (such as the U.S. and Europe) and equity markets in Asia, it is a good time to appraise Asia's strengths and vulnerabilities in the context of today's global economic environment.

We invite you to join Matthews Asia's Chief Investment Officer Robert Horrocks, Phd, and Portfolio Manager Kenneth Lowe, CFA, for a live webcast where they will share their thoughts on conditions in Asia given current market volatility.

We invite you to join us today for a live Q&A discussion of the recent market events in China and an analysis of the broader impact on Asia's equity and fixed income markets. Our speakers on the call will be Investment Strategist Andy Rothman, Portfolio Manager Teresa Kong, CFA and Portfolio Manager Andrew Mattock, CFA.

Just back from Vietnam, Bangladesh, Thailand, China, Singapore and Japan, join Portfolio Managers Taizo Ishida and Robert Harvey, CFA, as they share the on-the-ground sentiment, what they are hearing from companies and their outlook going forward.

During this live event we will discuss:
•How investors should view emerging markets
•How to help dampen draw-downs in EM during periods of uncertainty, thereby potentially enhancing risk-adjusted returns over the long-term
•Why we believe Asia will drive global economic growth in the decades ahead

While there is plenty of uncertainty in the markets today, periods of uncertainty often lead to opportunities for investors focused on what really matters in the years and decades ahead. We believe the emerging and frontier markets of Asia represent the most compelling growth opportunities available to investors. Please register and submit your questions to engage in this live event.

Sell-offs in Asia occur, from time-to-time. It is always difficult to know when you have hit bottom, or how long the period of poor returns will last. But we can at least see how Asia is bearing up in the current environment. We can also look at the root cause of the problems and, therefore, what the solutions may be and whether they are practical or not.

You are invited to access a presentation featuring Matthews Asia Chief Investment Officer, Robert Horrocks, PhD, where he shares an update on the markets and where we are seeing opportunities.

Asia has been in the news lately, raising a surge of questions and concerns regarding the potential impact on the rest of the world. Investors may be accustomed to dealing with risk, or familiar with “normal” market swings and clamor from year to year, but they are finding that there is not enough context around the recent volatility. It is not about risk, but about uncertainty—"What is going on?”

During last week's live event, Matthews Asia Chief Investment Officer, Robert Horrocks, PhD, shared his insights on: What drives sustainable growth in EM? Which markets are best priced? How do we think about recent events?

The first half of the year has been news-filled with the significant run-up of Chinese A-shares along with potential reforms and governance improvements within Japan, India and South Korea.

Given the recent increase in volatility, the following portfolio managers will share how they think about companies and what the implications of the key themes across Asia have on the positioning within our portfolios.